David's Utility Function If David's Current Wealth Is $61,000,then

question 337

Multiple Choice

David's Utility Function If David's current wealth is $61,000,then

• A) his gain in utility from gaining $1,000 is less than his loss in utility from losing $1,000.David is risk averse.
• B) his gain in utility from gaining $1,000 is less than his loss in utility from losing $1,000.David is not risk averse.
• C) his gain in utility from gaining $1,000 is greater than his loss in utility from losing $1,000.David is risk averse.
• D) his gain in utility from gaining $1,000 is greater than his loss in utility from losing $1,000.David is not risk averse.